Connect with us
Advertisement

Stanbic Bank to demonstrate commitment to Financial Literacy

… Participates at Banking and Wealth Expo 2017

Stanbic Bank Botswana continues to reaffirm commitment towards driving enhanced financial literacy and financial inclusion across Botswana. This commitment continues to grow, as Stanbic Bank joins other members of the Bankers Association of Botswana (BAB) and the Botswana Institute of Bankers (BIOB) to bring the inaugural Banking and Wealth Expo 2017 to life in Gaborone from November 15 to 18, 2017.

The Bank has already earned a strong reputation for sustainable investment and impact in this space, working to ensure an informed and educated nation, with a firm grasp of money matters. Stanbic Bank believes in the importance of financial inclusion is an enabler and accelerator of economic growth, job creation and development. Investment in this space has the potential to advance the national economy, and Batswana to truly move forward.

 “We are excited to see this project, championed by Bankers Association of Botswana (BAB) and the Botswana Institute of Bankers (BIOB), as a true demonstration of how those in the banking sector can work together to support Government’s priorities in advancing our Nation and her people. Financial literacy and inclusion are a long-term, never ending investment. Our work is simply never done, and we need to continue to find new ways to help bring us closer towards our collective ambition of a financially sound, educated and savvy populace.” said Stanbic Bank Botswana Chief Executive, Mr. Leina Gabaraane.

It is stated that, globally, more than 2 billion adults are excluded from the formal financial system. Indeed, per a 2015 Botswana financial inclusion survey, more than 20% of Botswana’s adult population is considered to be financially excluded, with the level of exclusion in rural areas found to be in excess of 30%.

Stanbic Bank supports the BAB and BIOB belief that affordable access to and use of financial services helps families and small business owners to generate income and manage irregular cash flows, as well as to invest in emerging opportunities. Moreover, a greater understanding and appreciation of economic matters through educational platforms as the Expo helps strengthen resilience to economic downturns and empower people to work their way out of poverty.

Banking and Wealth Expo, which will be freely open to the public is intended to expose the public to the vast scope of banking and financial services. The theme for the four-day event will be, “Bridging the Inclusion Gap through Financial Literacy.It aims to avail a rare opportunity for the public to seek financial information and advice that will enable them to make informed financial decisions and to better understand how they can use money and financial services towards improving their future livelihoods.  

The Expo will also feature many networking  sessions intended to impart financial awareness, knowledge and skills to various publics including school children, allowing kids to discover money and business through play and a collection of fun interactive, multi-media minds-on and hands-on activities.

Said Bankers Association of Botswana, Ms. Linah Sekwababe, “The public will, for the first time ever, have an opportunity to interact with a broad array of banks and other financial service providers under one roof. On the supply side, the Expo will provide a platform for financial agents to demonstrate their innovative financial products, services and delivery channels.” Further, the Expo will also provide an opportunity for policy makers and regulators to gauge or detect gaps in service provisioning and regulatory enablement.

Stanbic Bank’s passion for driving financial literacy is inherent in the very DNA of the business. Past investments in this space include but are not limited to: radio shows for entrepreneurs and individuals – Better Business, More Lebotha and Better Your Lebotha; a number of financial literacy focused workshops and engagements; and development and dissemination of financial literacy modules for young academics.

“We are committed to ensuring financial literacy efforts have great impact and long-term results. We are excited therefore to work with our fellow banking institutions through BAB and BIOB to ensure yet another platform to drive the message that financial literacy

Continue Reading

Business

P230 million Phikwe revival project kicks off

19th October 2020
industrial hub

Marcian Concepts have been contracted by Selibe Phikwe Economic Unit (SPEDU) in a P230 million project to raise the town from its ghost status.  The project is in the design and building phase of building an industrial hub for Phikwe; putting together an infrastructure in Bolelanoto and Senwelo industrial sites.

This project comes as a life-raft for Selibe Phikwe, a town which was turned into a ghost town when the area’s economic mainstay, BCL mine, closed four years ago.  In that catastrophe, 5000 people lost their livelihoods as the town’s life sunk into a gloomy horizon. Businesses were closed and some migrated to better places as industrial places and malls became almost empty.

However, SPEDU has now started plans to breathe life into the town. Information reaching this publication is that Marcian Concepts is now on the ground at Bolelanoto and Senwelo and works have commenced.  Marcian as a contractor already promises to hire Phikwe locals only, even subcontract only companies from the area as a way to empower the place’s economy.

The procurement method for the tender is Open Domestic bidding which means Joint Ventures with foreign companies is not allowed. According to Marcian Concepts General Manager, Andre Strydom, in an interview with this publication, the project will come with 150 to 200 jobs. The project is expected to take 15 months at a tune of P230 531 402. 76. Marcian will put together construction of roadworks, storm-water drains, water reticulation, street lighting and telecommunication infrastructure. This tender was flouted last year August, but was awarded in June this year. This project is seen as the beginning of Phikwe’s revival and investors will be targeted to the area after the town has worn the ghost city status for almost half a decade.

Continue Reading

Business

IMF projects deeper recession for 2020, slow recovery for 2021

19th October 2020

The International Monetary Fund (IMF) has slashed its outlook the world economy projecting a significantly deeper recession and slower recovery than it anticipated just two months ago.

On Wednesday when delivering its World Economic Outlook report titled “A long difficult Ascent” the Washington Based global lender said it now expects global gross domestic product to shrink 4.9% this year, more than the 3% predicted in April.  For 2021, IMF experts have projected growth of 5.4%, down from 5.8%. “We are projecting a somewhat less severe though still deep recession in 2020, relative to our June forecast,” said Gita Gopinath Economic Counsellor and Director of Research.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

Botswana partly closed economy a further blow of 4.2 fall in revenue

19th October 2020

The struggle of humanity is now how to dribble past the ‘Great Pandemic’ in order to salvage a lean economic score. Botswana is already working on dwindling fiscal accounts, budget deficit, threatened foreign reserves and the GDP data that is screaming recession.

Latest data by think tank and renowned rating agency, Moody’s Investor Service, is that Botswana’s fiscal status is on the red and it is mostly because of its mineral-dependency garment and tourism-related taxation. Botswana decided to close borders as one of the containment measures of Covid-19; trade and travellers have been locked out of the country. Moody’s also acknowledges that closing borders by countries like Botswana results in the collapse of tourism which will also indirectly weigh on revenue through lower import duties, VAT receipts and other taxes.

Latest economic data shows that Gross Domestic Product (GDP) for the second quarter of 2020 with a decrease of 27 percent. One of the factors that led to contraction of the local economy is the suspension of air travel occasioned by COVID-19 containment measures impacted on the number of tourists entering through the country’s borders and hence affecting the output of the hotels and restaurants industry. This will also be weighed down by, according to Moody’s, emerging markets which will see government losing average revenue worth 2.1 percentage points (pps) of GDP in 2020, exceeding the 1.0 pps loss in advanced economies (AEs).

“Fiscal revenue in emerging markets is particularly vulnerable to this current crisis because of concentrated revenue structures and less sophisticated tax administrations than those in AEs. Oil exporters will see the largest falls but revenue volatility is a common feature of their credit profiles historically,” says Moody’s. The domino effects of containment measures could be seen cracking all sectors of the local economy as taxes from outside were locked out by the closure of borders hence dwindling tax revenue.

Moody’s has placed Botswana among oil importers, small, tourism-reliant economies which will see the largest fall in revenue. Botswana is in the top 10 of that pecking order where Moody’s pointed out recently that other resource-rich countries like Botswana (A2 negative) will also face a large drop in fiscal revenue.

This situation of countries’ revenue on the red is going to stay stubborn for a long run. Moody’s predicts that the spending pressures faced by governments across the globe are unlikely to ease in the short term, particularly because this crisis has emphasized the social role governments perform in areas like healthcare and labour markets.

For countries like Botswana, these spending pressures are generally exacerbated by a range of other factors like a higher interest burden, infrastructure deficiencies, weaker broader public sector, higher subsidies, lower incomes and more precarious employment. As a result, most of the burden for any fiscal consolidation is likely to fall on the revenue side, says Moody’s.

Moody’s then moves to the revenue spin of taxation. The rating agency looked at the likelihood and probability of sovereigns to raise up revenue by increasing tax to offset what was lost in mineral revenue and tourism-related tax revenue. Moody’s said the capacity to raise tax revenue distinguishes governments from other debt issuers.  “In theory, governments can change a given tax system as they wish, subject to the relevant legislative process and within the constraints of international law. In practice, however, there are material constraints,” says Moody’s.

‘‘The coronavirus crisis will lead to long-lasting revenue losses for emerging market sovereigns because their ability to implement and enforce effective revenue-raising measures in response will be an important credit driver over the next few years because of their sizeable spending pressures and the subdued recovery in the global economy we expect next year.’’

According to Moody’s, together with a rise in stimulus and healthcare spending related to the crisis, the think tank expects this drop in revenue will trigger a sizeable fiscal deterioration across emerging market sovereigns. Most countries, including Botswana, are under pressure of widening their tax bases, Moody’s says that this will be challenging. “Even if governments reversed or do not extend tax-easing measures implemented in 2020 to support the economy through the coronavirus shock, which would be politically challenging, this would only provide a modest boost to revenue, especially as these measures were relatively modest in most emerging markets,” says Moody’s.

Botswana has been seen internationally as a ‘tax ease’ country and its taxes are seen as lower when compared to its regional counterparts. This country’s name has also been mentioned in various international investigative journalism tax evasion reports. In recent years there was a division of opinions over whether this country can stretch its tax base. But like other sovereigns who have tried but struggled to increase or even maintain their tax intake before the crisis, Botswana will face additional challenges, according to Moody’s.

“Additional measures to reduce tax evasion and cutting tax expenditure should support the recovery in government revenue, albeit from low levels,” advised Moody’s. Botswana’s tax revenue to the percentage of the GDP was 27 percent in 2008, dropped to 23 percent in 2010 to 23 percent before rising to 27 percent again in 2012. In years 2013 and 2014 the percentage went to 25 percent before it took a slip to decline in respective years of 2015 up to now where it is at 19.8 percent.

Continue Reading
Do NOT follow this link or you will be banned from the site!